Every apprenticeship has a recovery value.  Values range from £1500 – £27,000 depending on the specific apprenticeship standard or framework your apprentice will follow.  The rates are set by Government and will be subject to annual review.

The simplest way to think about how to recover your levy is to work out how much you are paying in annually and then look up the values (and recommended durations) of the apprenticeships you want to use and calculate how much of your levy such a programme would recover.

What is Co-Funding?

Government co-funding compliments the Apprenticeship Levy scheme in two ways.

First, if you are an employer who has an annual payroll of less than £3m a year, you will not pay the Apprenticeship Levy. So co-funding replaces the Levy for non-levied employers.

Through co-funding, government ensures that non-levied employers continue to have access to funding, enabling your appointed training provider use apprenticeships to train your staff. Payments will be 90% of the apprenticeship value, and, as the employer, you have to only pay 10%.

Additionally, if you are a levy-paying employer and want to train more apprentices than can be directly funded from your Apprenticeship Service levy account, Government will pick up 90% of the cost of training the additional apprentices and ask you to only contribute 10%.

In either case – levy-paying employer or not – government co-funding can significantly increase the number of staff that you can train whilst radically reducing the cost.

Accessing Co-Funding with an ATA

If you choose to recruit and employ your apprentices through the outsourced service of Potensis Apprenticeship Training Agency you can benefit from 90% co-funding from day one of your scheme.

Whilst Potensis is itself a Levy payer, it accesses co-funding from day one because its Levy is used up very quickly. So any apprentices you place with Potensis will be co-funded regardless of whether you have Levy funds or not.

Co-Funding for SMEs

If you are not a levy-paying employer, accessing co-funding is relatively straightforward. First you need a training provider to work with, who can walk you through the steps you need to take.

Here is an example of how it works.

 *Payments are profiled/invoiced monthly over the duration of the apprenticeship. 20% of the total is held back until the apprentice has sat their End Point Assessment (EPA).

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